Judge: Christopher K. Lui, Case: 22STCV22286, Date: 2025-01-15 Tentative Ruling

Case Number: 22STCV22286    Hearing Date: January 15, 2025    Dept: 76

            Plaintiff alleges that has was subjected to racial harassment and wage and hour violations.

Defendant Arius, Inc. moves for leave to file a Cross-Complaint.

TENTATIVE RULING           

The hearing on Defendant Arius, Inc.’s motion for leave to file a Cross-Complaint is CONTINUED to February 19, 2024 at 8:30 a.m. Defendant is to file a supplemental declaration as directed by the Court by February 3, 2024, with a supplemental opposition due February 12, 2024.

ANALYSIS

Motion For Leave To File Cross-Complaint

Defendant Arius, Inc. moves for leave to file a Cross-Complaint. Defendant filed an answer on February 6, 2024.

Civ. Proc. Code, § 428.50 provides:

(a) A party shall file a cross-complaint against any of the parties who filed the complaint or cross-complaint against him or her before or at the same time as the answer to the complaint or cross-complaint.

(b) Any other cross-complaint may be filed at any time before the court has set a date for trial.

(c) A party shall obtain leave of court to file any cross-complaint except one filed within the time specified in subdivision (a) or (b). Leave may be granted in the interest of justice at any time during the course of the action. 

(Civ. Proc. Code, § 428.50(a)-(c)[bold emphasis added].) 

Civ. Proc. Code § 426.50 provides:

A party who fails to plead a cause of action subject to the requirements of this article, whether through oversight, inadvertence, mistake, neglect, or other cause, may apply to the court for leave to amend his pleading, or to file a cross-complaint, to assert such cause at any time during the course of the action. The court, after notice to the adverse party, shall grant, upon such terms as may be just to the parties, leave to amend the pleading, or to file the cross-complaint, to assert such cause if the party who failed to plead the cause acted in good faith. This subdivision shall be liberally construed to avoid forfeiture of causes of action.

(Code Civ. Proc., § 426.50.)

            Leave to file a cross-complaint may be granted in the interest of justice at any time during the action. (Civ. Proc. Code, § 428.50(c). 

            “A motion to file a cross-complaint at any time during the course of the action must be granted unless bad faith of the moving party is demonstrated where forfeiture would otherwise result. Factors such as oversight, inadvertence, neglect, mistake or other cause, are insufficient grounds to deny the motion unless accompanied by bad faith.” (Silver Orgs. v. Frank (1990) 217 Cal.App.3d 94, 99 [bold emphasis and underlining added].)

Plaintiff argues that the Cross-Complaint is only being asserted now to delay trial and to gain settlement leverage, and discovery and law and motion will have to be conducted as to the Cross-Complaint.

            Here, Defendant has not adequately explained why the request to file a Cross-Complaint is only being made now. Defendant’s counsel makes the conclusory statement that the facts giving rise to the causes of action alleged in the Cross-Complaint were recently discovered during the discovery process in this action. However, there is no explanation as to what facts were discovered and why they were not already known prior to discovery. This will bear upon whether Defendant’s delay in seeking leave to file a Cross-Complaint—filing this motion on October 28, 2024 after the answer was filed on February 6, 2024—was in bad faith.

            As such, the hearing on the motion for leave to file a Cross-Complaint is CONTINUED to February 19, 2024 at 8:30 a..m. Defendant is to file a supplemental declaration by February 3, 2024, with a supplemental opposition due February 12, 2024.